…The rapidly-expanding money supply grows much faster than the underlying economy. So relatively more money chases after relatively less goods and services, which bids up their prices. As more money is poured into the system, each unit has less purchasing power. Inflation is ultimately an oversupply of money, which quantitative easing greatly accelerates. Investors flock to precious metals in such times.

The supply-and-demand dynamics of gold and silver protect and multiply capital when central banks are inflating their money supplies. Since fiat money can be wished into existence instantly in unlimited quantities, its growth vastly outpaces the naturally-constrained growth in global precious-metals supplies from mining. A lot more currency competing for relatively less silver inevitably drives up its price.

So make no mistake, the Fed’s decision to more than double QE3 last week is wildly bullish for silver going forward. The Fed just announced an unprecedented tidal wave of money-supply growth from debt monetization that is going to start hitting our economy’s shores in January. The recent silver selling is the result of unrelatedbearish psychology, and such extreme sentiment anomalies never last for long….

Bah! Humbug And A Happy Hyperinflationary Christmas To All

There are, according to USA Today, 364 items that need to be purchased to create the ultimate gift basket from the epic holiday song “The 12 Days of Christmas”. Based on PNC Wealth’s Christmas Price index, the cost of this basket is $107,300 in 2012 (up 6.1% year-over-year). Since 2001, when the Fed embarked upon its uber-expansionary monetary policy experiments, the cost of Christmas has risen over 40% faster than the Government’s prescribed CPI (and if we use a different cost-base, since 2006, the cost of Christmas has risen 46% per year on average)….

At least that’s how a number of prominent investors and institutions are viewing the price action right now. Here’s a sampling of this year’s “gold bugs” and what they’ve been doing about precious metals recently.

Jim Rogers, billionaire and cofounder of the Soros Quantum Fund, publicly stated last month that he plans to “sell federal debt and purchase more gold and silver.”

George Soros increased his investment in GLD by a whopping 49% last quarter, to 1.32 million shares. His stake is now worth over $221 million. Many investors don’t realize that he also placed call options on GDX worth$9 million. The most logical explanation is that he thinks gold equities are undervalued and that there’s big money to be made in them within a year.

Marc Faber mocks those claiming gold is in a bubble. “It’s nowhere close to that stage,” he says. And even though he’s already sitting on a huge gain, he won’t take any profits. Why? “I keep a picture of Mr. Bernanke in my toilet, and every time I think about selling my gold, I look at it and I know better!”

Brent Johnson, a San Francisco hedge-fund manager, believed in gold so much that he started his own gold fund, Santiago Capital, earlier this year. His latest video points out that there have been “278 global easing moves in the last 14 months.” How does someone not own gold in that kind of environment?

Don Coxe, a highly respected global commodities strategist, stated at the Denver Gold Forum that “now is the best climate I have ever seen for an increase in gold prices.” He told fund managers, mining analysts, and mining executives to prepare for significantly higher gold prices and thus higher gold-mining-stock valuations. “The opportunities ahead are the best I’ve seen.” He thinks a new gold rush is ahead for gold stocks, and that a “lustrous” rally will occur within a year.

Jeffrey Gundlach, cofounder of DoubleLine Capital, predicts that deeply indebted countries and companies will default sometime after 2013. Central banks may forestall these defaults by pumping even more money into the economy – but at the risk of higher inflation in coming years. He recommends buying hard assets including gold, and also “gold-mining firms because we consider them to be bargains.”

Rob McEwen, CEO of McEwen Mining and founder of Goldcorp, is buying precious metals because he believes gold will someday hit $5,000 and silver $200.

Savneet Singh, a former investment analyst at Morgan Stanley, was frustrated with the options available to acquire physical gold in an allocated, whole-bar format outside the banking system. He started Gold Bullion International, the platform service used by the Hard Assets Alliance, a service that virtually does away with the need to buy GLD.

Silver & Gold Investors: Abandon Hope All Ye Who Enter?

Endless Bankster paper, week after week, month after month, it’s enough to make the best of us throw in the towel. The fact is however, it’s all an illusion. An elaborate magic trick designed to separate the truth from reality. The Bankster’s monopoly money does NOT trump all, and as I point out, the demand for even Canadian Silver Maple Leaf coins has gone absolutely exponential since 2008. So, we can either feel sorry for ourselves when the criminal cartel spanks the paper markets, or we can stay the course and stack more PHYSICAL knowing that in the long view – holders of PHYSICAL precious metals CAN’T lose. Jeff Nielson of Bullion Bulls Canada joins me to discuss.

Why One Gold Bull Thinks the Selloff Won’t Last

With gold hovering near a four-month low, even some of the yellow metal’s most ardent fans have begun to sweat.

The perpetual bullion bull and sworn enemy of central bankers everywhere told CNBC’s “Futures Now” this past week that gold’s recent sell-off is only temporary and that investors should be “patient enough to ride this thing out.”

Gold, he said, is one of the few avenues available to investors as a store of value in a world where major central banks are determined to fight economic weakness with ultra-accommodative monetary policy.

“What are you going to do? You’re going to hold dollars at zero percent with (Fed Chairman) Ben Bernanke promising to print until infinity?” the fierce Fed critic asked. “There’s no currency that you can hold and be confident inits future purchasing power. But you can hold gold, you can hold silver.”